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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance...

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance plans, it does not combine insurance with investment. This separation is important. Insurance should protect your family, while investments should help you create wealth. Traditional insurance-cum-investment plans often provide modest returns that may struggle to beat inflation over long periods. For many people, buying adequate term insurance and investing separately through suitable mutual funds or other investments can be a more efficient approach. For instance, a healthy person in their thirties may be able to purchase a term cover of Rs 1 crore for approximately Rs 15,000 to Rs 20,000 annually, depending on age, health, policy tenure and other factors. Insurance Needed You should strongly consider term insurance if your spouse, children or parents are financially dependent on you. It is also essential if you have liabilities such as a home loan, car loan or personal loan. Even a non-working spouse may require life insurance because replacing the economic value of household responsibilities, childcare and family management can be expensive. To summarise, if you have loans or plan to take loans, have children or plan to have children, or have a financially dependent spouse or parents, term life insurance is an absolute must. Enough Cover A figure such as Rs 1 crore may sound large, but it may not necessarily be sufficient. The right amount should be calculated based on your family’s actual financial needs. First, estimate household expenses. If your family spends Rs 10 lakh annually and you want to provide for the next 15 years, you may require at least Rs 1.5 crore for basic living expenses. Second, add all outstanding loans. A home loan of Rs 35 lakh and a personal loan of Rs 5 lakh would increase the total requirement to Rs 1.9 crore. Third, include future financial goals. If your children’s higher education is expected to cost Rs 50 lakh, the required cover rises to Rs 2.4 crore. Fourth, provide an additional amount for your dependent parents or spouse. Adding Rs 20 lakh would take the total requirement to approximately Rs 2.6 crore. Finally, adjust the calculation for inflation. Inflation gradually erodes the value of money. To ensure that your family has enough to meet rising expenses, it is wise to add an appropriate inflation adjustment to each of the above steps, as necessary. Do Not Delay Term insurance is generally cheaper when purchased at a younger age and while you are in good health. Disclose all medical conditions, lifestyle habits and existing policies honestly, as incorrect or incomplete information can create difficulties during claim settlement. Life is uncertain, but your family’s financial security need not be. The purpose of term insurance is simple: even in your absence, your responsibilities should continue to be fulfilled. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

When Thailand Turned Disruption into Hospitality

Whatever the political situation, tourists would not be allowed to suffer.

Having more than 30 years of experience in the travel industry, I have witnessed countless memorable moments. Travelling across the globe has not only allowed me to explore beautiful destinations but also to meet many wonderful people who have enriched my life in meaningful ways. Every journey carries a story, a lesson, and sometimes a moment that stays with you forever.


In this first part of my article, I have shared one such true incident from my travels—an experience that deeply touched my heart and left a lasting impression on my life.


Thailand Tours

It was meant to be just another Thailand tour. That year, we were conducting nearly two Thailand tours every month. The itinerary was familiar, the arrangements smooth, and the excitement predictable. Nothing about it suggested that it would become one of the most unforgettable chapters of my life. But sometimes, travel teaches you lessons that no guidebook ever can.


To understand what unfolded, a little background is necessary. Thailand follows a constitutional monarchy, much like the United Kingdom. However, in Thailand, the king is not merely a constitutional head — he is deeply respected and emotionally revered by the people. His word carries immense moral weight.


At that time, Prime Minister Thaksin Shinawatra was seen as dynamic and bold. Yet many believed he did not show the monarchy the reverence it deserved. When he sold his billion-dollar business empire to a Singapore-based company, public resentment intensified. Political unrest had already been brewing for months. The nation was divided into two visible factions — popularly known as the Yellow Shirts and the Pink Shirts.


We arrived in Thailand on 20th November. Our tour covered Pattaya and Bangkok, as usual. However, on the very day of our arrival, I heard that King Bhumibol Adulyadej had dismissed Prime Minister Thaksin while he was on an official visit to the United States. The military had taken control.


In Thailand, such developments were not entirely unheard of. So initially, there was no panic. We continued with our itinerary calmly.


Then came 22nd November

Thousands of Yellow Shirt protesters occupied the international airports of Bangkok, Phuket, and Krabi. Roads leading to the airports were blocked. Government buildings were surrounded. The situation escalated rapidly. And then came the news—both Bangkok airports were shut down.


Initially, we believed it would last a day or two. Surely the authorities would restore order. Surely flights would resume soon.


But this was not a spontaneous protest. It was organised, determined, and well prepared. The protesters had tents, food supplies, and everything needed for a prolonged stay. It became clear that this situation would not end quickly. Our return was scheduled for 24th November.


Suddenly, two heavy questions stood before me — how would I take 26 people back to India? And where would I accommodate them safely if the shutdown continues?


I extended our hotel booking for one additional day at our own expense. But as a tour leader, I knew that one day was manageable — uncertainty was not. The financial strain was real, but the emotional responsibility weighed far more heavily. My group members were understanding and cooperative. Yet I could sense the quiet anxiety in their eyes — the same uncertainty I was feeling inside.


Finally, our local guide and I went to the Thailand Tourism office. What I witnessed there is something I will never forget. Hundreds of stranded tourists filled the office. Yet amidst the chaos, there was remarkable dignity and calmness. At the entrance, a board read:


“We are extremely sorry for what is happening in Thailand currently, and we solicit your cooperation in this matter. As a gesture, we are providing free water and snacks to all at this office, & we will help you arrange your stay in the Kingdom of Thailand. Kindly contact the guest relations officer.”


And true to those words, water bottles and snacks were arranged for all.


When we approached the Guest Relations desk, they checked our tickets and handed us an official letter. They told us to present it at any 3-star or 4-star hotel in Thailand. The government would bear the entire cost of stay and meals. No hotel could refuse us.


I reconfirmed, almost in disbelief. They calmly assured us — whatever the political situation, tourists would not be allowed to suffer.


In that moment, I felt something shift inside me—from fear to gratitude.


(The writer is a travel enthusiast. Views personal.)

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